WISCO purchased 19.9% of CLM’s common shares. It is now CLM’s largest shareholder and is entitled to nominate a director to the board. WISCO also acquired a 25% interest in a partnership established between the two firms to own and develop the Bloom Lake property.

WISCO will purchase four million tonnes of concentrate per year at fair market value and has rights to purchase additional ore from Bloom Lake and a right of first offer to purchase ore from CLM's Lamalee and Peppler Lake properties.

WISCO approached TBG to assist in the sourcing of overseas iron ore projects and, on TBG’s advice, selected CLM. TBG worked closely with WISCO to structure and negotiate a transaction that will maximize WISCO’s long-term financial gains as well as secure a stable supply of iron ore. TBG coordinated communication between all involved parties throughout the transaction.

During the transaction closing, Mr. Peng Chen, Vice General Manager of WISCO, said, “TBG played a crucial part in the successful completion of this investment.”

About Wuhan Iron and Steel Group

WISCO is one of China’s three leading iron and steel groups. WISCO currently has an annual capacity of 30 million tonnes of steel, which is expected to reach 50 million tonnes by 2011.

About Consolidated Thompson Iron Mines Limited

CLM is an exploration and development mining company with assets in the Labrador Trough in Canada. 

About The Balloch Group

TBG was established in 2001 by Howard Balloch, Canada’s ambassador to China from 1996 to 2001. Since 2001, TBG has completed transactions worth more than US$4 billion in M&A, joint ventures and private placements including equity and debt financings.